Bitcoin (BTC) price it is facing new pressure to sell after falling below the important support of $60,000, adding weight to the trend. The price has fallen slightly by 1.05% to $58,363 in the last 24 hours, which is not going well with the subdued market. The recent crash has made the market less bearish, while lower prices continue to create and sell side pressure. While this may seem like another leg down, it may also indicate that Bitcoin is entering the final phase of its bearish cycle, a phase that is often characterized by panic selling and major declines before it begins.
However, if the current weakness continues and buyers fail to intervene, BTC could see another sharp correction of around 25% before finding a strong bottom. For traders, the focus now changes whether this is the last catch or just the beginning of a deeper dive.
Why is the price of Bitcoin (BTC) falling today?
The price of Bitcoin is facing a new pressure after breaking below the support key of $60,000, which is causing a huge sell-off in both the real estate and derivatives markets. The recent decline appears to be driven by a mix of factors, all of which have added pressure to Bitcoin’s long-term trend. Here are the main reasons why today:
- Losses below $60,000 led to over $320 million in long-term losses: The $60K support loss acted as the latest trigger, forcing long positions into the market and accelerating the decline.
- Spot Bitcoin ETFs recorded $180 million in turnover in the past 24 hours: Unrelenting ETF sales continue to dampen institutional demand, reducing the market’s ability to adopt new products.
- BlackRock reportedly sold more than $200 million worth of BTC: This increased selling pressure and strengthened sentiment in the market.
- Citigroup cut its Bitcoin target from $112,000 to $82,000: The drop also came with lower expectations for ETFs, which is also damaging institutional confidence.
- Bitcoin’s open interest has dropped from $34.8 billion to $32.9 billion: A drop of nearly $2 billion shows that traders are reducing risk.
- Stocks haven’t recovered after being high for several weeks: This shows sentiment is waning, and traders are no longer willing to pay as much for long-term exposure.
- The market outlook remains weak and bearish: BTC has failed to recover its recent resistance near $63,500, maintaining a more bearish outlook and increasing the risk of a deeper move to the $53,000–$54,000 area.
Why Bitcoin (BTC) Price May See 25% Retracement Before Bullish Move
The current Bitcoin market is beginning to resemble the last setup of the bear market of 2022, where a combination of weak momentum and volatility led to a deep correction before the market stabilized.
Back then, the 50-week moving average crossed below the 100-week MA, creating a bearish crossover that indicates weakness. At the same time, Bitcoin’s RSI slipped into the oversold area, when the price lost the 200-week move around support-plus which caused about 26% criticism before finding the bottom.
The current setup is starting to show a similar pattern. Again, the 50-week MA is about to cross below the 100-week MA, while the RSI has dropped to 32, hovering near historic weak levels. More importantly, Bitcoin is now trading below the 200-week MA near $62,600, which is often seen as a major long-term support.
However, one major difference this time is that the price may not fall immediately. The chart suggests that Bitcoin may attempt a short-term recovery to $64,000–$65,500, where it may also test support broken by the moving average. If the area fails to return to treatment, it may act as a site of rejection.
Is Bitcoin (BTC) Price Nearing Its Last Bear Market?
Bitcoin’s structure shows similar patterns to its late bear phase in 2022, where the combination of the 50/100 MA, RSI weakness, and the 200-week low led to a 26% correction before the market bottomed. The current setup shows the same pattern, with BTC now trading below the 200-week MA at $62,600 and the RSI dropping to 32, indicating continued weakness.
In the short-term, the price of Bitcoin (BTC) may still see relief at $64,000–$65,000, but unless the bulls retake the trend and turn into support, the risk of another 25% drop to $47,000–$50,000 remains high. This position can be used as the last position before the recovery is started.
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